Russia. Food exports has raised by more than 20%

10.04.2018 | UkrAgroConsultExports of food and agricultural raw materials last year amounted to $20.7 billion, which is 21.1% more than in 2016, reads the report of the Ministry of agriculture. One third of the food products exported abroad fell on grain and products of the milling and cereal industry. The export of these products in the coming years may increase 1.5 times, experts believe.

The share of foodstuffs and agricultural raw materials in all exports amounted to 5.8% last year, reads the report of the Ministry of agriculture "On the progress and results of implementation of the state program of agricultural development in 2017". In 2017, the volume of agricultural exports reached $20.7 billion, which is 21.1% more than in 2016. According to the calculations of the Center of International trade, exports in real terms in 2017 amounted to 65.2 million tons, which is 20.8% higher than in 2016.

The main buyers of products of the Russian agro-industrial complex last year were foreign countries: 75% of the total value of exported goods ($15.9 billion) fell on them. Leaders were Egypt ($1.78 billion), Turkey ($1.78 billion), China ($1.77 billion), South Korea ($1.46 billion).

On the domestic market, the Ministry of agriculture fixes the excess production of products in a number of areas. The report of the Ministry says that in 2017 the indicators of the Doctrine of food security for grain, sugar, vegetable oil, potatoes and meat were exceeded. Russia provides itself with them in sufficient quantity, so it has the opportunity to export such products abroad. Insufficient development of export has a negative impact on domestic producers, reducing their potential income.

Now in Russia there is no system to support the export of agricultural products, which would withstand competition with foreign counterparts, reads the report of the Ministry of agriculture. Domestic producers have to compete on the world stage with foreign suppliers who receive support in their countries to promote goods to world markets.

The representative of the Russian export center (REC) Mikhail Sneg stressed that the domestic system of support for the export of goods is now going through the stage of active formation. He reminded that President Vladimir Putin in his address to the Federal Assembly set the task to double non-energy exports. Export of agricultural products abroad can reach $ 45 billion in six years, the REC predicts.

For the export strategy to be successful, it is necessary to be competitive in terms of price and quality. It is necessary to modernize production facilities in agriculture and in the processing industry, said the press service of the Ministry of agriculture.

The head of the Institute for agricultural market studies Dmitry Rylko reminded that the countries belonging to the WTO can subsidize exports directly, one can only use indirect measures of support. According to him, it can be assistance to companies in certification of domestic products abroad, sponsoring manufacturers to participate in international exhibitions. Manufacturers can also be provided free research on foreign markets.

The Director of the analytical centre "SovEcon" Andrey Sizov stressed that in the medium term the Russian food exports can be increased in 1.5 times, to $30 billion. Approximately the same volume of products, he said, is now exported abroad by Canada. He noted that agricultural raw materials are the basis of goods exported from Russia abroad. New markets should be sought to market them. For example, one should consider exports to Saudi Arabia and the countries of North Africa - they are now the largest buyers of a number of agricultural products.